Case Conclusion Date: 02.22.2007
Practice Area: Chapter 13 Bankruptcy
Outcome: Court overruled the Chapter 13 Trustee's Objection
Description: The Chapter 13 Trustee filed objections to confirmation on the grounds that the direct payments to the student loan creditors discriminated unfairly against the other unsecured creditors in violation of 11 U.S.C.S. Â§ 1322(b)(10). The court noted that, unlike cases that had disallowed direct payments on student loans, the debtors were not proposing to pay 100 percent of their student loans at the expense of their other unsecured creditors but simply proposed a continuation of the terms of the contract. The court overruled the Chapter 13 Trustee's objections to confirmation of the debtors' plan and confirmed the plan.